Importance of Internal Marketing for Service Companies Corporate Reputation and Customer Satisfaction

Vesna Babić-Hodović, Maja Arslanagić, Eldin Mehić

Abstract

The aim of this paper is to measure customer-based corporate reputation (CBCR) of service companies and to analyze importance of internal marketing within this construct. Research was conducted in Bosnia and Herzegovina and therefore customer-based corporate reputation is put in a specific cultural context. Convenient sampling method was used to gather responses from individual consumers. Apart from descriptive and one-dimensional statistic instruments, collected data were analyzed through exploratory factor analysis. Causality between variables was tested through correlation and OLS regression analysis. This research provided more insights into interconnection of two important constructs for service companies: corporate reputation and internal marketing. CBCR measure incorporates “customer orientation” and “good employer” dimensions which we classified as internal marketing elements. Results showed that elements of customer-based corporate reputation have positive and significant influence on customer satisfaction. This demonstrates that internal marketing represents an important component in building corporate reputation and that it influences customers’ perception and their satisfaction.

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